Correlation Between Diego Pellicer and EXp World

Can any of the company-specific risk be diversified away by investing in both Diego Pellicer and EXp World at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Diego Pellicer and EXp World into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Diego Pellicer Worldwide and eXp World Holdings, you can compare the effects of market volatilities on Diego Pellicer and EXp World and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Diego Pellicer with a short position of EXp World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diego Pellicer and EXp World.

Diversification Opportunities for Diego Pellicer and EXp World

0.0

Correlation Coefficient

Diego Pellicer  EXp World

Pay attention - limited upside

The 3 months correlation between Diego and EXp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Diego Pellicer Worldwide and eXp World Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eXp World Holdings and Diego Pellicer is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Diego Pellicer Worldwide are associated (or correlated) with EXp World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eXp World Holdings has no effect on the direction of Diego Pellicer i.e., Diego Pellicer and EXp World go up and down completely randomly.

Pair Corralation between Diego Pellicer and EXp World

If you would invest  0.01  in Diego Pellicer Worldwide on October 13, 2024 and sell it today you would earn a total of  0.00  from holding Diego Pellicer Worldwide or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Diego Pellicer Worldwide  vs.  eXp World Holdings

Diego Pellicer Worldwide

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Diego Pellicer Worldwide are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Diego Pellicer showed solid returns over the last few months and may actually be approaching a breakup point.

eXp World Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days eXp World Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Diego Pellicer and EXp World

The main advantage of trading using opposite Diego Pellicer and EXp World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diego Pellicer position performs unexpectedly, EXp World can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EXp World will offset losses from the drop in EXp World's long position.

The idea behind Diego Pellicer Worldwide and eXp World Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.